Kinderhook sells VESTA Modular to McGrath Rentcorp

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Feb 01, 2023, 18:05 ET

SOUTHFIELD, Mich., Feb. 1, 2023 /PRNewswire/ -- Kinderhook Industries, LLC ("Kinderhook") announced today the sale of VESTA Modular ("VESTA" or the "Company") to McGrath RentCorp ("McGrath" or the "Company") for a cash purchase price of $400 million.

Founded in 2014 and headquartered in Southfield, MI, VESTA is a leading provider of temporary and permanent modular space solutions across a diverse base of end markets and applications. The Company operates two divisions - (i) modular space leasing whereby it leases units from its owned fleet of over 6,000 units to customers across a range of end markets and (ii) modular project installation whereby it facilitates the design, construction, and installation of modular spaces. VESTA's core end markets include education, industrial, construction, government, municipalities and retail sectors. In addition to its Southfield, MI headquarters, VESTA operates strategically placed branches in some of the nation's fastest growing markets - Atlanta, GA; Elkhart, IN; Houston, TX; Dallas, TX; Miami, FL; Nashville, TN; Riverside, CA; and Sacramento, CA.

"We are grateful for the successful partnership we forged with Kinderhook over the past two years and are proud of what we have accomplished during that period," said Dan McMurtrie, Co-Founder and Chief Executive Officer of VESTA. "McGrath is a highly-respected leader in our sector with a tremendous culture and core values that align with those of VESTA. We believe that our employees will thrive under their leadership."

"Kinderhook is thrilled with this outcome for VESTA, its employees, and our limited partners," said Rob Michalik, Managing Director at Kinderhook. "Our investment in VESTA highlights the key tenets of Kinderhook's investment strategy – partnering with world class management teams to create industry leading companies. We thank the VESTA team for their hard work over the past two years and look forward to the great accomplishments to come from the combined VESTA and McGrath teams."

"Over the course of two years, the VESTA Team completed five add-on acquisitions and invested heavily in organic growth nearly tripling the size of its modular fleet and adding five new branch locations," said Sam Keenan, Principal at Kinderhook. "These investments coupled with outstanding leadership across the VESTA organization created a launching pad from which the business achieved outsized growth in a short period of time. McGrath's approach to growth aligns well with VESTA and we are excited to see what they will do in the future with this business."

Oppenheimer & Co. acted as exclusive financial advisor and Kirkland & Ellis LLP served as legal counsel to Kinderhook and VESTA in the transaction.

About Kinderhook Industries

Founded in 2003, Kinderhook Industries, LLC is a private investment firm that manages $5.4 billion of committed capital. We have made in excess of 375 investments and follow-on acquisitions since inception. Kinderhook's investment philosophy is predicated on matching unique, growth-oriented investment opportunities with exceptional financial expertise and our proprietary network of operating partners. Our focus is on middle market businesses with defensible niche market positioning in the healthcare services, environmental / business services, and automotive / light manufacturing sectors. We have a track record of successfully and consistently building industry leaders.

For more information, please visit: www.kinderhook.com

About VESTA Housing Solutions LLC

For more information please visit: www.vestamodular.com

About McGrath Rentcorp

McGrath RentCorp is a leading business-to-business rental company in North America with a strong record of profitable business growth. Founded in 1979, McGrath's operations are centered on modular solutions through its Mobile Modular and Mobile Modular Portable Storage businesses. In addition, its TRS-RenTelco business offers electronic test equipment rental solutions, and its Adler Tank Rentals business provides environmental containment solutions for hazardous and nonhazardous liquids and solids. The Company's rental product offerings and services are part of the circular supply economy, helping customers work more efficiently, and sustainably manage their environmental footprint. With over 40 years of experience, McGrath's success is driven by a focus on exceptional customer experiences. This focus has underpinned the Company's long-term financial success and supported over 30 consecutive years of annual dividend increases to shareholders, a rare distinction among publicly listed companies.

Headquartered in Livermore, California. Additional information about McGrath and its businesses is available at: mgrc.com and investor.mgrc.com.

SOURCE Kinderhook Industries